Randall Forsyth on speculation in shares of black-owned companies

While Corporate America is taking steps in reaction to the recent protests, including cosmetic ones—like removing Aunt Jemima pancake mix or Uncle Ben’s rice from supermarket shelves—shares of some black-owned companies are being frantically bid up.

Once again, it appears the action is being driven by day traders, many new to the stock market, on platforms such as Robinhood, as I reported here nearly a month ago.

For instance, the class A shares of Urban One (ticker: UONE), a multimedia company that operates radio broadcasters targeting primarily African-American listeners, increased nearly 20-fold in the past week, to $36.30. Trading volume surged as high as 57 million shares Thursday; a month ago, fewer than 10,000 shares changed hands on an average day. The D shares (UONEK) saw an even bigger jump in volume, as they hit $4.15 Friday from 88 cents a week earlier.

Both series of shares have been at the top of the popularity list on Robintrack.net, a website that tracks the trading on Robinhood.

~ Randall W. Forsyth, "Unlikely Stocks Soar As Societal Issues, Speculation Collide," Barron's, June 20, 2020